SIXTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES)

First Regular Session )
SENATE
S. NO. 478
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Introduced by Senator Antonio "Sonny" F. Trillanes IV
EXPLANATORY NOTE
The Government Procurement Reform Act (Republic Act No. 9184) enacted on, January 10,
2003 was envisioned to employ the much needed reforms in the country's procurement system.
Ten years after its enactment, corruption in the public and private sector in the cOlmtry is still
pervasive and deep-rooted, according to both government and international sources.
In the case of the fertilizer fund scam during the past administration, a number of foundations,
peoples' organizations, nongovernment organizations and associations have become agents for
money laundering transactions, together with the National Agricultural and Fisheries Council, a
regular attached agency of the Department of Agriculture. Findings of the Anti-Money
Laundering Council (AMLC) revealed that a firm - Livelihood Corporation - where former
Undersecretary Bolante of the Department of Agriculture transferred PI72.6 million to Molugan
Foundation, Inc. and P40 million to Assembly of Gracious Samaritan Foundation, Inc. (AGS).
AMLC also found out that Molugan Foundation transferred P38 million to the AGS.
In this light, this Act seeks to amend the Government Procurement Refonn Act by including
private institutions, non-government organizations, people's organizations and other private
entities that receive government monies in the coverage of the Procurement Act. It is hoped that
the enactment of this measure would make far implementation stricter and would tighten the
registration and regulation of private entities, NGOs, and pas.
In view of the foregoing, immediate approval of this measure is ea estly sought.
SONNY" F. TRIlLANES IV
Senator
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SIXTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES)
First Regular Session )
SENATE
S.NO. 478
Introduced by Senator Antonio "Sonny" F. Trillanes IV
AN ACT
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AMENDING SECTION 4 OF REPUBLIC ACT NO. 9184, OTHERWISE KNOWN AS
THE GOVERNMENT PROCUREMENT REFORM ACT ON ITS SCOPE AND
APPLICATION
Be it enaoted by the Senate and the House ()f Representatives of the in Congress
assembled: . ,
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I SECTION 1. Section 4 of Republic Act No. 9184 is hereby amended to read as follows:
2 ARTICLE I
3 GENERAL PROVISIONS
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5 SEC. 4. Scope and Applioation. - This Act shall apply to the Procurement and
6 Infrastructure Proj ects, Goods, and Consulting Services, regardless of source of funds,
7 whether local or foreign, by all branches and instrumentalities of govermnent, its department,
8 offices and agencies, including govemment-owned and/or controlled corporations and local
9 government units; subject to the provisions of Commonwealth Act No. 138; PROVIDED
10 THAT, PRIVATE INSTITUTIONS, NONGOVERNMENT ORGANIZATIONS,
11 PEOPLES' ORGANIZATIONS AND OTHER PRIVATE ENTITIES WHO OR
12 WHICH ARE RECIPIENTS OF GOVERNMENT FUNDS ARE LIKEWISE
13 COVERED BY THIS SECTION INSOFAR AS THE AMOUNT THEY HAVE
14 RECEIVED FROM GOVERNMENT. Any treaty or international or executive

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agreement affecting the subject matter of this Act to which the
Philippine government is a signatory shall be observed.
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SEC. 2. Repealing Clause. - Any other law, presidential
decree or issuance, executive order, letter of instruction,
administrative order, proclamation, charter, rule or regulation
and/or parts thereof contrary to or inconsistent with the provisions
of this Act is hereby repealed, modified or amended accordingly.
SEC. 3. Effectivity Clause. - This Act shall take effect
fifteen (15) days following its publication in the Official Gazette or
in two (2) newspapers of general circulation.
Approved,
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